Discover our Fixed Rate Savings accounts
Frequently Asked Questions
If you have a pot of savings you don’t need access to – or spare money each month you can commit – a Fixed Rate Savings account could be right for you.
- It allows you to fix the rate of interest your money earns for a set period.
- Because you’re committing your money for longer, you can usually achieve a higher rate of interest than most other types of savings accounts.
- You’re unaffected by the ups and downs of interest rates. This could shield your savings if interest rates were to fall. Although your savings won’t benefit if interest rates rise.
You select the length of time you feel able to commit your savings for (for example a 1 year fixed rate ISA, 2 year fixed rate ISA). Then sit back and earn this guaranteed rate of interest.
Different Fixed Rate Savings accounts have different rules over when you can close them. For more information on Skipton’s approach, see ‘What is the difference between a bond and an ISA?’ below.
Ultimately, you should only use Fixed Rate Savings accounts for money you’re confident you won’t need to access. They could be an ideal way for saving for goals one or two years in the future, rather than the here and now.
There are three main differences between a Fixed Rate Bond and a Fixed Rate Cash ISA.
| 1. Tax | The interest you earn on a Fixed Rate Bond is taxable. Although there is a Personal Savings Allowance (PSA), which means you don’t pay tax until you meet that limit. Discover more information about your Personal Savings Allowance. With Fixed Rate Cash ISAs, there is no tax to pay on the interest you earn. So ultimately your savings could be worth more. |
| 2. How much you can pay in | Every UK adult has a set ISA allowance each tax year (which runs April 6 to April 5 the year after). For the current tax year, your ISA allowance is £20,000. There aren’t the same limits over how much you can pay into a Fixed Rate Bond. It depends on the product and provider. For example, at Skipton most of our Fixed Rate Bonds allow you to save up to £1 million. |
| 3. How you access your savings | At Skipton, our Fixed Rate Bonds don’t usually allow any withdrawals or early closure. Our Fixed Rate Cash ISAs do let you close them early, but there would be an interest penalty to pay. This could mean you’d get back less than you paid in. |
It depends on the savings account you choose and the provider.
At Skipton, you can’t make regular payments into our Fixed Rate Bonds or Fixed Rate Cash ISAs. You can make payments up to a set date (which is made clear in the product terms and conditions).
After the last paying in date, your account will no longer allow payments in.
With our Fixed Rate Bonds, you can’t withdraw money during the fixed term. You can’t usually close it early either. From time to time, we might offer a fixed rate bond with limited access.
You can’t withdraw money from our Fixed Rate Cash ISAs during the fixed term. You can choose to withdraw your full balance and close the account. Although there is usually an interest penalty for doing so, and you may get back less than you paid in.
Ultimately, fixed rate savings accounts are unlikely to be the right choice for savings you feel you might need access to. We offer easy access accounts that could be more suitable for you.
There is no easy answer to this because it very much depends on your circumstances.
As a starting point, you should consider what it is you’re saving for and how long you have to achieve it. Then you can consider what term of Fixed Rate Savings account might be ideal for you.
If you have not used your full ISA allowance for the current tax year, it might be worth considering our Fixed Rate Cash ISAs. That way, you could make sure you won’t have to pay tax on the savings interest you earn.
If you’re not sure the best route for you, we’re here to help.
Usually, you need to be at least 16 years old to be able to open a Fixed Rate Bond. To open a Fixed Rate ISA, you need to be at least 18.
We do offer a Junior Cash ISA option if you’re under 18 or want to save for a child/grandchild. Our Junior Cash ISA has a variable rate of interest.
Your eligible deposits with Skipton Building Society are protected up to a total of £85,000. This protection is provided by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.
Other ways to save
If a Fixed Rate Savings account is not right for you, we have a range of other types of savings.
You're protected up to £85,000
Your eligible deposits with Skipton Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.
